Question
1.What is Costco’s business model? Is the company’s business
model appealing? Why or why not?
2.What are the chief elements of Costco’s strategy? How good
is the strategy?
3.Do you think Jim Sinegal is an effective CEO? What
grades would you give him in leading the process of crafting and
executing Costco’s strategy? What support can you offer for these
grades? Refer to figure 2.1 in chapter 2 in developing your
answers.
4.How well is Costco performing from a financial perspective?
Do some number-crunching using the data in case exhibit 1 to
support your answer. Use the financial ratios presented in “A Guide
to Case Analysis” and in table 4.1 of the text to help you diagnose
Costco’s financial performance.
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